Acta Universitatis Danubius. Œconomica, Vol. 15, No. 1 - 1
This paper provides a review of the firm-NPO- recipient model that helps develop the
economy of South Africa highlighting the regulatory environment of South Africa which encourages
many firms to use their corporate social responsibility (CSR) efforts to develop national skills and
infrastructure. In South Africa, an often chosen vehicle for delivery of CSR, is a nonprofit
intermediary organisation (an NPO). NPOs play an important transitional management role in mutual
value creation linking firms to CSR recipient communities. NPOs are each a specialist in a specific
skill or community infrastructure delivery requirement, additionally acting to highlight community
needs for a CSR intervention, to firms. Notwithstanding the contribution of NPOs to many developing
African countries economies, studies as to what criteria in their working environment facilitate the
NPOs to do their work as intermediaries, is limited especially for South Africa. This paper reviews
the legislative contextual environment of NPOs in relationships for CSR delivery with business firms
in South Africa highlighting how this enables both the nonprofit NPO and profit driven firm, to
participate in the economic development of South Africa.
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